Book and tax depreciation example
Illustrative sample data from a fictional company. It demonstrates the records and relationships described on this page.
| Asset / schedule | Book treatment | Tax schedule | Reconciliation |
|---|---|---|---|
| Office equipment · FA-00018 | Cost PKR 600,000 · 5 years | Class rate per maintained schedule | Separate basis |
| Depreciation · Oct 2026 | PKR 10,000.00 | PKR 15,000.00 | Difference PKR 5,000.00 |
| Estimate review | Useful life changed to 6 years | No automatic book-to-tax overwrite | Review required |
Illustrative amounts only. Tax classes and rates must be maintained and reviewed against current Pakistan rules; this is not tax advice.
Maintain the asset register
Record acquisition details, useful life, residual value, asset category, location and supporting documents. Use component records when a significant asset has parts with different useful lives.
Run book depreciation
Choose whether depreciation starts in the acquisition month or following month for the company. Review depreciation postings and changes in estimates before they flow into the ledger.
Record later changes
The register supports disposals, impairment, revaluation, component accounting and depreciation-estimate changes with accounting entries and retained history.
Keep tax depreciation separate
Review a distinct Pakistan tax-depreciation schedule and reconcile it to book depreciation. Tax categories and tax-year treatment should be checked against current rules by the company’s tax adviser; the tax schedule does not silently change book accounts.